The Basic Story

In early November 2025, Amazon filed a lawsuit against Perplexity, an AI startup, over a tool called Comet. This isn’t just about shopping, it’s a landmark case that will determine how AI assistants interact with the internet. Amazon claims Comet is secretly shopping on its platform without permission. Perplexity argues that if you authorize an AI tool, it should have the same rights as you do. Both companies are drawing a line in the sand, and the outcome could reshape how we use the internet for years to come.

What Is Perplexity and Comet?

To understand this dispute, you need to know what these companies do. Perplexity is an AI search engine company valued at around $20 billion. It is  known for giving you quick, straightforward answers to questions using artificial intelligence. Think of it as a faster, smarter alternative to Google.

Comet is Perplexity’s newest innovation, It has an AI shopping assistant built into its web browser. Imagine having a personal shopping assistant that lives on your computer. You tell it, “I need a new coffee maker under $50 with fast shipping,” and it does the work for you. It browses Amazon, compares products, checks prices, and completes the purchase. You don’t have to click around or deal with ads trying to get you to buy expensive items you don’t need. It just gets what you asked for and buys it.

Perplexity launched Comet in July 2025 and made it available worldwide for free in October. The idea was to revolutionize online shopping by removing the friction and making it faster and easier. For many people, this sounds great. Automated shopping sounds like a dream come true.

Amazon’s Four Main Complaints

But Amazon doesn’t see it that way. The e-commerce giant filed a lawsuit with four primary arguments:

1. Deception and Hidden Identity

Amazon’s biggest complaint is that Comet disguises itself. When Comet shops on Amazon, it doesn’t announce “Hey, I’m an AI bot.” Instead, it masquerades as a regular person using a web browser. Amazon says this is sneaky and violates the platform’s terms of service. Amazon argues that if you’re going to operate as a bot on someone’s website, you need to identify yourself as such. It’s like walking into a store wearing a disguise versus walking in openly—Amazon prefers transparency.

2. Poor Shopping Experience

Amazon also claims that Comet gives you worse shopping recommendations than you’d get yourself. When you browse Amazon normally, the site learns what you like and recommends similar products. It suggests Prime shipping options for faster delivery. It shows you items based on your history. But Comet, according to Amazon, ignores all of this. It just buys what you asked for without considering faster shipping options or products that might be better deals. Amazon argues this actually makes the shopping experience worse, not better.

3. Security and Accountability Issues

What happens if something goes wrong? If you accidentally buy the wrong item through Comet, who’s responsible? If your credit card gets charged incorrectly, who handles the refund? Amazon worries that having a hidden robot making purchases creates confusion about who’s accountable. The company also suggests that Comet’s secretive nature could expose users to scams and fraud. If scammers can pretend to be normal users, maybe AI bots pretending to be normal users opens the door for criminals too.

4. The Real Issue: Money

Here’s the thing that industry experts think is the real motivation: Amazon makes enormous amounts of money from advertising and promoted products. When you browse Amazon, you might see sponsored listings at the top of search results. You might see ads for products similar to what you’re viewing. You might impulse-buy a book or a gadget while looking for something else. That’s how Amazon makes money—not just from taking a cut of each sale, but from showing you ads.

A robot like Comet ruins that. A robot doesn’t impulse-buy things. It doesn’t get distracted by advertisements. It just buys exactly what you told it to buy, nothing more. So from Amazon’s perspective, Comet is threatening a major revenue stream.

Perplexity’s Defense: “Bullying Is Not Innovation”

Perplexity fired back with a blog post titled “Bullying Is Not Innovation,” accusing Amazon of using legal threats to crush competition. Here’s their argument in simple terms:

If you have permission to use Amazon, and you authorize an AI tool to shop on your behalf, then that tool should have the same rights you do. There’s no real difference between you clicking the “buy” button and authorizing Comet to click it. You’re still in control; you’re just using a different method.

Perplexity also pointed out that your passwords never leave your computer. They’re stored locally on your device, never uploaded to Perplexity’s servers. This means Perplexity never even sees your login information—the AI agent works with what you’ve already authorized.

The company’s argument is that you should be free to use whatever tools help you navigate the internet, as long as you have access to the service. Amazon’s lawsuit, Perplexity argues, is just corporate bullying designed to protect Amazon’s advertising business rather than address any genuine safety concerns.

The Bigger Picture: Who Controls the Internet?

This lawsuit is really about a fundamental question: Who gets to decide what you can do on the internet?

One perspective says big platforms like Amazon should control what tools can access their services. Just like a restaurant can decide which delivery apps can take orders, Amazon can decide which AI tools can shop on its site. This is how most businesses work. DoorDash negotiates with restaurants. Expedia negotiates with airlines. Why shouldn’t AI shopping tools negotiate with Amazon?

The other perspective says the internet should be open and permissionless. If you have access to a service and you authorize a tool to act on your behalf, that should be enough. You shouldn’t need permission from the platform. Your authorization should be sufficient.

This disagreement isn’t just about Amazon and Perplexity. Tech giants like Google, Microsoft, and OpenAI are all developing AI agents that can take actions online. The ruling in this case will affect all of them.

Why This Matters to You

The outcome of this lawsuit will shape how you use AI in the future. If Amazon wins, big tech companies can block third-party AI tools, forcing you to use only the official tools they provide. Your choices become limited. You get only what Amazon wants to give you.

If Perplexity wins, it establishes that user authorization is enough. Any AI tool you authorize could potentially work anywhere on the internet. More options. More innovation. But also potentially more complexity.

This is the first major court case about AI agents, so whatever happens will set precedent that other companies will follow. It matters.

What Happens Next?

The lawsuit just started. Both companies will present evidence, argue their cases, and potentially go to trial. This could take months or even years. For now, Amazon is taking technical steps to block more AI agents, and Perplexity is standing its ground.

The Bottom Line

This dispute isn’t really about shopping. It’s about power, control, and the future of AI on the internet. It’s about whether massive corporations get to be the gatekeepers of innovation or whether users should be free to use whatever tools make their lives easier. The court’s decision will ripple through the entire tech industry and affect how all of us interact with the internet for years to come.